WORLD TRADE  
ORGANIZATION  G/SCM/N/155/TUR 
18 September 2007 
 (07-3899) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1  
of the GATT 1994 and Article 25 of the Agreement  
on Subsidies and Countervailing Measures  
  
TURKEY 
 
 
 The following communication, dated 11 September 2007, is being circulated at the request of the Delegation of Turkey.    
_______________ 
  
TABLE OF CONTENTS 
Page  
 
I. INVESTMENT ENCOU RAGEMENT IN TURKEY .......................................................... 1 
 II. TURK EXIMBANK'S PROG RAMMES ……………………………….………………......7 
 
III. EXPORT SUBSIDY PROGRAMME FO R AGRICULTURAL PRODUCTS.................20 
 
 
 The following is submitted by the Republic of Turkey as its New and Full Notification 
Pursuant to Article XVI:1 of the GATT 1994 an d Article 25 of the Agreement on Subsidies and 
Countervailing Measures, for the year 2007.   I. INVESTMENT ENCOURAGEMENT IN TURKEY  
As it has been given in the original full notifi cation of Turkey (G/SCM/N/123/TUR) in 2005, once 
again in year 2007 we are pleased to present th e following information in a descriptive format. 
Compared to the 2005 notification, there is a ma jor change regarding previously existing two 
programmes, namely "The General Investment  Encouragement Progra mme (GIEP)" and "The 
Programme for Aids Granted to Small and Medium  Sized Enterprises' (SMEs) Invesments", for 
encouraging investments in Turkey.  Presently, instead of having two separate programmes, encouragement of SMEs' investments and encourag ement of investments with other objectives (such 
as regional development, R&D and environmental protection, which were previously under the 
coverage of GIEP), have been integrated into  one single programme, namely "The Investment 
Encouragement Programme (IEP)", details of which are presented in the following pages. G/SCM/N/155/TUR 
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  Another major change is related to th e encouragement measures offered under the 
programme.  Previously, certain types of investments as specified with the related legislation could 
benefit from a measure called "Credit Allocation fro m the Budget".  In the current programme, the 
said measure has been ceased to be offered, inst ead a new measure called "Interest Support" for 
particular types of investments has been introdu ced into the encouragemen t mechanism, details of 
which are also given in the following pages. 
The programme, of which all types of investme nts to be realized by both domestic and 
foreign investors can take advantage, is based on a regional and horizontal approach and  the 
measures offered under it are not directly related to trade.  
Apart from the above mentioned programme, implementation of the "energy support 
measure" within the context of "Law on Encouragement of Investments and Employment and 
Amendment of Certain Laws" (No. 5084, dated 29 January 2004, which wa s issued by the Ministry of 
Finance) has been continued by the Undersecretariat of Treasury in accordance with the provisions of 
Communiqué No:2007/1, details of which are given in the following pages. 
Additionally, if needed, exhaustive informa tion concerning the investment encouragement 
system, the Decrees and Communiqués in detail, as well as statistical data, can be obtained from the 
www.treasury.gov.tr
 website. 
The following pages will give a more in depth description of the system: 
 
A. ENCOURAGING INVESTMENTS IN TURKEY 
 
 The Turkish Investment Encouragement System, wh ich is currently in force, consists of an 
integrated programme called as "The Investment Encouragement Programme (IEP)", which contains 
various encouragement measures to encourage, s upport and orient all types of investments with 
various objectives including regional developmen t, support of SMEs, R&D and environmental 
protection based on the provisions of related legislat ion, reference to which is given below under the 
sub-title "1. Legal Basis". 
  It should be noted that, as far as the mechanis m is concerned, domestic and foreign investors 
are equally treated; the companies having fore ign capital can benefit from all encouragement 
measures granted to domestic comp anies with the same conditions.  
 
 In order to qualify for investment encour agement measures offered under IEP investors are 
entitled to take an investment encouragement certifi cate at first.  Foreign investors must first apply 
and qualify to receive an investment encouragement certificate from the General Directorate of Foreign Investments (GDFI); domestic investors alike must apply, qualify and receive their 
certificates from the General Directorate of Incen tives and Implementation (GDII).  Both of these 
General Directorates are sub-branches of the Undersecretariat of Treasury.  
 
The Investment Encouragement Programme (IEP) 
 1. Legal Basis 
 
 Investment encouragement measures wh ich are designed and implemented by the 
Undersecretariat of Treasury are based on the provisions of the "Decree Concerning State Encouragements to Investments" (Decree No: 2006/10921
1, dated: 28 August 2006 which has been 
amended by Decree No: 2007/121422) 
                                                      
1 Published on the Official Gazette dated 06.10.2006 and No: 26311 
 2 Dated 21 May 2007, published on the Official Gazette dated 01.06.2007 and No: 26539   G/SCM/N/155/TUR 
 Page 3 
 
 
  2. Purpose 
 
 The purpose of the Decree is to; encourage, s upport and orient investments, in-line with 
European Union and other international commit ments, in conformity with the objectives of 
Development Plans and Annual Programmes, in orde r to enhance continuous development, reduce 
regional disparities within the country, create new employment opportunities, increase the 
competitiveness of small and medium sized enterpri ses (SMEs) while taking advantage of advanced 
and appropriate technologies with greater added value and to rea lize international competitiveness. 
 
3. Scope 
  The Decree covers all invest ment activities related to the production of goods and services, 
research and development (R&D), environmenta l protection and improvement of quality and 
standards.   
 
4. Regional Demarcation 
 
 As mentioned above, one of the main objectives of the system is to eliminate inter-regional 
imbalances.  In connection with this objective and the eligibility criteria set for the measure interest 
support (explained below), the following regiona l classification is established with the Decree; 
 
• Priority Development Regions:  Provinces which are determined as the Priority 
Development Regions by the Decision of the C ouncil of Ministers according to their socio-
economic development levels.  The list of th e provinces within the Priority Development 
Regions is given in the Table I annexed to this document. 
 
• Other Regions:  Provinces which are left outside of the priority development region 
classification. 
 5. Application Procedure to Obtain an Investment  Encouragement Certificate   
 As a rule all investors, domestic or foreign,  who have prepared their investment feasibility 
studies and proposals, apply to the Undersecretariat of Treasury with the related documents for the 
evaluation of their investment projects to be considered for encouragement. 
  However, in order to enhance the participa tion of local governmental and non-governmental 
institutions in the investment encouragement implemen tations, investors, if they prefer, can apply to 
the local authorities for investment projects in  certain manufacturing and agro-industry sectors 
determined in the related Communiqué that have a fixed investment cost not exceeding 8 Million 
TRY
3 (excluding the ones to be made by foreign capital companies). 
  For applications to be made to the Undersecr etariat of Treasury, all investments to be made 
by companies having foreign capital and their bran ches will be received by General Directorate of 
Foreign Investment (GDFI) and for other investments, applications ar e made to General Directorate of 
Incentives and Implementation (GDII). 
  An investor should complete and submit th e following documents during the application: 
 
• Investment application form 
• The receipt of the amount deposited in the Central Bank, 400 TRY  
• A notarized copy of authorized  signatures of the company  
                                                     
 
3 TRY is the abbreviation used for New Turkish Liras. G/SCM/N/155/TUR 
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  • Copies of the trade registry gazettes in which th e Articles of Association and current status of 
the company is published 
  Once the application is completed and presente d for evaluation, in conformity with the 
Decree and Communiqués, eligible investment proj ects are granted an Investment Encouragement 
Certificate, after an evaluation and analysis of each project proposal. 
  Investment Encouragement Certificate is a document entitled to the name of the company, 
which specify information regarding the investment pr oject in question such as the subject and type of 
investment, termination period, fixed investment cost and specific encouragement measures granted. 
 
6. Encouragement Measures and their Descriptions 
 
 Within the objectives and the scope of th e programme, based on the current legislation 
eligible investment projects which are gran ted a certificate can benefit from the following 
encouragement measures:  
(a) Exemption from Customs Duties  
  For the investment projects which are evaluated and found eligible by the Undersecretariat of Treasury, imports of the machinery and equipment to  be used in the production process shall be 
subject to Customs Duty exemption.  Once the exem ption is listed on the "Certificate", the investor 
can import the machinery and equipment indicated on the approved list, namely the "Machinery and 
Equipment List" aiming only at the purposes of the investment in question, without paying any customs duties.  
  
(b) Value Added Tax Exemption for importe d and domestically purchased machinery and 
equipment 
  Pursuant to the Law No:4369 and date: 22/7/1998, imports and domestic purchases of 
machinery and equipment within the scope of approved machinery and equipment lists attached to the 
investment encouragement certificate are exempted from the Value Added Tax.  
 
(c) Interest Support 
  "Interest support" measure is included in the investment encouragements with the current 
legislation.  In order to benefit from this measure investments should be made either;  
 
 (i) in priority development regions or 
 (ii) by small and medium sized enterprises (SMEs) or  (iii) in the fields of research and development  (R&D) or environment protection      Interest support shall be granted as the compensati on of certain basis points of the interest rate 
to be paid to financial institutions for investment cred its with a maturity of at least one year to realize 
investments within the scope of an investment encour agement certificate.  The rate of compensation is 
5 percentage points in TRY credits and 2 per centage points in foreign currency credits.  
  Total interest support for investment credits shall in no case exceed;  (i) 300 thousand TRY in research and de velopment and environment protection 
investments, 
 (ii) 200 thousand TRY in investments of small and medium sized enterprises (SMEs) and   (iii) 1 million TRY in investments made in priority development regions   G/SCM/N/155/TUR 
 Page 5 
 
 
   On the other hand, to enhance investments in  research and development operating credits for 
purchases of operating supplies are eligible for interest support with a maturity of minimum 6 and maximum 12 months.  Similarly, the rate of comp ensation is 5 percentage points in TRY credits and 
2 percentage points in foreign currency credits .  The maximum amount of interest support for 
operating credits in research and development is 100 thousand TRY. 
 
B. ENERGY SUPPORT 
 
1. Legal Basis 
 
 Undersecretariat of Treasury is entitled as the implementing institution for the measure called 
"energy support" provided to undert akings under certain conditions.  This measure is implemented in 
accordance with the provisions of Communiqué No:2007/1
4 within the context of "Law No: 5084 on 
Encouragement of Investments and Employ ment and Amendment of Certain Laws"5, which has been 
amended by Law No: 53506 and Law No: 5615.7  
 2. Purpose  
 Purpose of the above mentioned Law is to increase investments and employment levels in 
provinces which are lagging behind the others in  terms of socio-economic comparison, through 
income tax withholding incentive, social security  insurance premium incentive, energy support and 
free land support. 
 
3. Scope  
 Energy support is provided in  the provinces which have a GDP per capita equal to or less than 
US$1,500 as of 2001 and provinces which have a ne gative socio-economic development index value 
for 2003 as calculated by State Planning Organization.  List of these provinces is given in Table II in the Annex. 
 
4. Conditions of Energy Support 
  In order to benefit from the energy support: 
  (a)  Undertakings should operate in an imal husbandry (including aquaculture and 
poultry), organic and biotechnological agriculture, mushroom cultivation and composting, greenhouse production, certificat ed seed production, cooling warehouse, 
manufacturing industry, mining, tourism accommodation, education and health 
sectors. 
  (b)  Undertakings should have at least 10 employees.  
                                                     
 
4 Published on the Official Gazette dated 04.07.2007 and No: 26572 
5 Dated 29 January 2004, published on the Official Gazette dated 06.02.2004 and No: 25365 
6 Dated 12 May 2005, published on the Official Gazette dated 18.05.2005 and No: 25819 
7 Dated 28 March 2007, published on the Official Gazette dated 04.04.2007 and No: 26483 
 G/SCM/N/155/TUR 
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  5.  Energy Support Rates 
 
 Energy support rate is applied as 20 per cent of electricity energy cost of the undertaking. 
Support rate increases 0.5 point;  
 (a)  For each additional employee above th e minimum number for undertakings which 
had started operation after 01.04.2005. 
  (b)  For each additional employee above th e minimum number and hired after 01.04.2005 
for undertakings which had starte d operation before 01.04.2005.  
 
 Energy support shall not exceed 50 per cent of the electricity costs of the undertakings operating in Organized Industrial Zones or Industry Zones and 40 per cent of these costs for the undertakings operating in other areas.  
ANNEX 1 
COMPLEMENTARY DATA ON THE INVESTMENT ENCOURAGEMENT 
SYSTEM 
Table I
 
List of Provinces within the Priori ty Development Regions in Turkey  
 
 
Ad ıyaman Bitlis Hakkari Malatya Sinop 
Ağrı Çanakkale  
(Bozcaada and Gökçeada) Iğdır Mardin Sivas 
Aksaray Çank ırı Kahramanmara ş Muş Şanl ıurfa 
Amasya Çorum Karabük Nev şehir Şırnak 
Ardahan Diyarbak ır Karaman Ni ğde Tokat 
Artvin Elaz ığ Kars Ordu Trabzon 
Bart ın Erzincan Kastamonu Osmaniye Tunceli 
Batman Erzurum K ırıkkale Rize Van 
Bayburt Giresun K ırşehir Samsun Yozgat 
Bingöl Gümü şhane Kilis Siirt Zonguldak 
  G/SCM/N/155/TUR 
 Page 7 
 
 
  Table II  
List of Provinces within the Scope of Energy Support  
  
Ad ıyaman Bingöl Gümü şhane  Malatya Sivas 
Afyon Bitlis Hakkari  Mardin Şanl ıurfa 
Ağrı Çank ırı I ğdır  Mu ş Şırnak 
Aksaray Çorum Kahramanmara ş Nevşehir Tokat 
Amasya Diyarbak ır Karaman Ni ğde Trabzon 
Ardahan Düzce Kars Ordu Tunceli 
Artvin Elaz ığ  Kastamonu Osmaniye U şak 
Bart ın Erzincan  K ırşehir Rize Van 
Batman Erzurum  Kilis Siirt Yozgat 
Bayburt Giresun  Kütahya Sinop Bozcaada and 
Gökçeada8 
 
II. TURK EXIMBANK'S PROGRAMMES: 
 
(a)  Turk Eximbank in Brief 
 
 Turk Eximbank, which was established in 1987, is  the sole official e xport credit agency in 
Turkey.  As a wholly state-owned bank, acting as the government's major e xport incentive instrument 
in Turkey's sustainable export strategy, the Bank ma intains close co-operation with the related entities 
of the government.  Turk Eximbank's policies and ope rations have been formulated to work within the 
framework of the export-led growth strategies pursued by all Turkish governments since 1980.  The 
Bank operates in the framework of the Banks Act and the regulations of the Banking Regulation and 
Supervision Agency of Turkey.   Turk Eximbank is under the responsibility of the Prime Ministry or such other State Ministry as nominated by the Prime Minister.  The responsible  minister represents the General Assembly of the 
Bank within the Government. 
  Turk Eximbank has two branches and six liaison offices with a total staff of 399.  (b)  The Bank's Financial Structure and Support to the Export Sector 
 
 The Bank's main sources of funds are dir ect funding from the Treasury through capital 
injections as well as through borrowing from commercia l banks and international financial markets.  
  Turk Eximbank's financial resources are;  
 1. Capital injections 
 2. Domestic banks 
                                                     
 
8 Within Çanakkale provincial boundaries, only these two islands are covered by the Law.  G/SCM/N/155/TUR 
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   3. International syndication loans 
 4. Bilateral loans from international banks  5. International bond issues  6. International financial instituti ons such as EDC, JBIC, IBRD, etc. 
 
 The Turkish Treasury makes capital contributions  to Turk Eximbank as the sole shareholder 
of the Bank.  These contributions are used to sup port Turk Eximbank's activitie s and to maintain the 
Bank's capital adequacy.  In additio n, losses incurred by Turk Eximba nk in its credit, insurance and 
guarantee transactions as a result of political risks ar e covered by Turkish Treasury, like in all the 
other officially supported ECAs.  
 
 The nominal capital of Turk Eximbank is YTL 1 billion, of which YTL 929 million is paid-in 
as of end-2006.  If requested, the Turkish Treasury  supports Turk Eximbank in its funding efforts by 
guaranteeing the Bank's borrowings abroad.  As of end-2006, 22 per cent of the Bank's sources used 
for the funding of her assets is paid-in capital.  Th is ratio indicates that Turk Eximbank, like all other 
ECAs in the world, funds her activities mainly fro m domestic and international sources rather than 
capital injections.  Hence the Bank always reflects the cost of funding to the rates she charged in order 
to secure a sound financial structure.   In this context, Turk Eximbank gives importance;  
 1. To be financially sustainable, 
 2. To help increase Turkish merchandise and project exports, 
 3. To independently assume  a broader range of risk, 
 4. To be a catalyst for other financia l institutions to support Turkish exports. 
 
 Turk Eximbank's identification of financial sustainability as a primary objective is driven 
mostly by its current and future international obl igations to the OECD, WTO and the EU, in which 
ECAs are expected to at least break-even over ti me and eliminate all trade subsidy programmes. 
Additionally, as Turk Eximbank borrows from inte rnational financial markets regularly and its 
financial soundness affects its borrowing costs, a sound financial structure gains more importance.  In 
this context, it is very important to implement effective strategies and procedures to control credit 
risk, liquidity risk, and asset/liability risk.  B esides, Turk Eximbank requests credit ratings from 
Standard & Poor's and Moody's regularly each year in order to tap the international money and capital 
markets regularly on its own, without the guarantee of the Treasury.  The Bank's management believes that credit ratings provide wider access to  capital markets and as such reduce the cost of 
borrowing. 
 
 Using these sources, Turk Eximbank provides, on the average, a total support of US$7-
8 billion to the export sector, annua lly, through export credit, ex port credit insurance and guarantee 
programmes, as described below.  As a medium term  strategy, Turk Eximbank, like most other ECAs 
in developed countries, plans to change its direction of activities gradually not only from short term to 
medium and long term programmes, but also from cash loans to non-cash loans and guarantees thus 
providing more room for Turkish commercial banks  in short-term trade financing to Turkish 
exporters.   Turk Eximbank provided a total export financing support of US$7.8 billion in terms of financing support and pure cover, which accounted for 9 per cent of Turkey's exports in 2006.  
 
(c)  Turk Eximbank's International Obligations   While implementing its programmes and formi ng strategies, Turk Eximbank is committed to 
conforming to the internationally accepted rul es and regulations set by the WTO, the OECD 
Consensus, the EU and the Berne Union.  In 19 94, Turk Eximbank became a full member of the  G/SCM/N/155/TUR 
 Page 9 
 
 
  Berne Union, an international association of expor t credit insurers, and has been representing Turkey 
in the Export Credits and Credit Guarantees Group (ECG) of the OECD Trade Committee since 1998, 
when Turkey became a full member  of the Group.  Turkey also b ecame an observer member of the 
Participants' Group (PG) of the OECD at the e nd of 2006; Turk Eximbank has been representing 
Turkey in this Group since then.  The Bank makes regular reporting and notifications to the Berne 
Union, the ECG, the PG and the WTO.  As it is  well known, a new period started in the relations 
between Turkey and the EU with the launch of full membership negotiations on 3 October 2005. 
Before the start of negotiations, a screening process h as started for each chapter.  Within this process, 
information about the Bank's activities has been prov ided to the EU officials under the "State Aid" 
title (under the chapter "Competition Policy") and the "Export Credits" title (under the chapter 
"External Relations").  Turkey concluded this fi rst round of membership talks with the EU in 
June 2006 and the examinati on and assessment of the acquis communautaire  began since then. 
12 June 2006 has marked the opening of negotiations on individual "chapters".  
  As part of its obligations under the Custom s Union Decision, Turkey has harmonized its 
legislation with that of the EU with respect to officially supported export credits.  Within this 
framework, the OECD Consensus pr inciples on officially supported export credits with a repayment 
term of two or more years have been adopted On  23 January 1996; the Undersecretariat of Foreign 
Trade issued a Communiqué (Export 96/12) in the O fficial Gazette (no: 22532) and Turk Eximbank is 
in charge of the execution of this Communiqué whos e guidelines are in parallel to the principles of the 
OECD Consensus.  Additionally, since Turkey is a full member of the ECG and an observer member 
of the PG, she has committed to act on a best effo rt basis to comply with the guidelines of the 
Arrangement on officially supported export credits.  Turk Eximbank has been spending efforts to 
achieve a harmonization of conditions  and thus a level of playing field among ECAs at European and 
OECD level.  Hence, the Bank joins regular meetin gs of the ECG and PG and closely monitors the 
developments in the Groups.  Besides, she compli es with the reporting requirements of the Creditor 
Reporting System (CRS) of the ECG; also provides the details of the level of officially supported 
export credits activity on a six monthly basis.  Additionally, the Bank completes the biannual cash flow questionnaire and updates each year her ch apter in the Yellow Book of the OECD, which 
explains the Export Credit Financing Systems in OECD Member and Non-member Countries. 
Various reportings are made and questionnaires ar e filled under such subjec ts as "environment", 
"bribery in international transactions", "unpr oductive expenditure".  After Turkey's observer 
membership to the PG, the Bank has also begun to carry out "payment experience reporting" and 
"prior notification".    Turk Eximbank is bound by the General Unders tandings of Berne Union, as she has been a 
full member of the Union since April 1994.  The Ba nk has to act in conformity with international 
rules and regulations as well as sound underwriting prin ciples.  She has already adopted the rules and 
criteria set in the General Understanding of the Un ion and sends periodic repor ts, regarding insurance 
and lending activities, non-payment situations, the terms of cover offered and commitments/offers 
available, to the Union.   Turk Eximbank is also bound by the Agreem ent on Subsidies and Countervailing Measures of 
the WTO.  As it is known, in this Agreement, expor t subsidies including those illustrated in Annex I 
are prohibited subsidies.  Item (k) of this Annex states that export credits at rates below government's 
cost of funds are prohibited subsidies.  Item (j ) of the Annex states that export credit guarantee or 
insurance programmes at premium rates inadequate  to cover long-term operating costs and losses of 
programme are prohibited subsidies.   G/SCM/N/155/TUR 
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  1. Title of the subsidy progra mme, if relevant, or brief descr iption or identification of the 
subsidy  
 
CREDIT PROGRAMMES 
 
 1. Short-term Export Credits  
 
 (i)  Credits Extended via Commercial Banks 
 
  Pre-shipment Export Credit (PSEC) Programme   (ii)  Credits Extended Directly by Turk Eximbank 
 
  Foreign Trade Companies (FTC) Short-term Export Credit Programme   Pre-export Credit Programme 
  Pre-export Credit Programme for Small and Medium Scale Enterprises (SMEs) 
 
 (iii)  Credits provided using the sources of the Central Bank of Turkey  
  Short-term Export Credit Discount Programme 
  Short-term Pre-shipment Rediscount Programme  
 2.  Medium-Term Export Credits (Project Credits) 
   Overseas Chain Stores Investment Credit Programme;   Ship-Building Finance and Guarantee Programme; 
  Letter of Guarantee Programme for Overseas Contractors' Services; 
  Specific Export Credit Programme   3.  Credits for Foreign Currency Earning Services    Tourism Marketing Credit Programme 
  International Transportation Marketing Credit Programme 
  Credit Programme for Foreign Currency Earning Services 
 
 4.  Islamic Development Bank Backed Credits 
 
  IDB Export Financing Scheme (EFS)  
  EFS Line;   IDB Import Trade Financing Operations (ITFO Line) 
 
 5.  Buyers' Credit and Guarantee Programme 
 
INSURANCE PROGRAMMES 
  6.  Short-term Export Credit Insurance    Short-term Export Credit Insurance Programme  
 7.  Medium and Long-term Insurance Facilities 
   Specific Export Credit Insurance Programme;   Post-shipment Political Risk Insurance Programme 
  Post-shipment Comprehensive Risk Insurance Programme;  G/SCM/N/155/TUR 
 Page 11 
 
 
    Post-shipment Comprehensive Risk Insurance Programme; 
  8.  Insurance Programme for Unfair Calling of Bonds 
 
2. Period covered by the notification.  The period to be covered by the notification should be the 
most recently completed calendar or fiscal year.  In the latter case, the start and end dates of 
the fiscal year should be specified.  
  1 January–31 December 2006 
 
3. Policy objective and/or purpose of the subsidy
 
  1. Short-term Export Credits  
 
 Turk Eximbank extends short-term export cr edits to manufacturers , exporters and export-
oriented manufacturers to meet their financing ne eds especially at the pre-shipment stage.  These 
credits are extended in New Turkish Lira or in fore ign currency either directly by Turk Eximbank or 
via intermediation of selected Turk ish commercial banks In 2006, 67 pe r cent of the short-term credits 
offered by Turk Eximbank was extended via in termediary Turkish comme rcial banks which are 
allocated credit lines and 33 per cent of the short- term credits was extended directly by Turk 
Eximbank.  Additionally, 69 per cent of the total credits was provided in YTL and 31 per cent in 
foreign currency.  The Bank has fina ncially supported 4 per cent of Turk ey's exports by her short-term 
credits in 2006.    (i)  Credits Extended via Commercial Banks 
 
 Pre-shipment Export Credit (PSEC) Programme;  a short-term credit facility provided to 
manufacturers, export-oriented manufacturers a nd exporters starting from the early stages of 
production in all sectors.  The aim of the progra mme is to meet the financing needs of these 
companies in the early stages of production.  The programme has YTL and foreign currency credit options. 
 
 PSEC-Priority Development Areas Export Credit Programme; a sub-programme of the PSEC 
extended in YTL to companies located in Turkey's pr iority development areas.  It aims to support 
exporters in these regions and ultimately eliminate the social and economic gaps that exist between 
these regions and Turkey's more developed regions.   
 (ii)  Credits Extended Directly by Turk Eximbank 
  Foreign Trade Companies (FTC) Shor t-term Export Credit Programme;  extended to all 
companies entitled to foreign trade corporate compa ny/sectoral foreign trade company status, which is 
conferred by the Undersecre tariat of Foreign Trade.  It aims to provide financial support to large 
export trading companies for their export financi ng needs.  The credit has YTL and foreign currency 
options. 
 
 Pre-export Credit Programme; a short-term credit facility provided to export-oriented 
manufacturers, manufacturer-exporters and exporters in the preparatory stage of exports.  It aims to 
increase the competitiveness of exporters in internati onal markets and support export projects in the 
preparatory stage.  The credit has YTL and foreign currency options.  
 
 Pre-export Credit Programme for Small and Medium Scale Enterprises (SMEs);  a new short-
term credit facility (effective since April 2003) ex tended both in YTL and foreign currency to only 
small and medium scale enterprises.  It aims to pr ovide financial support to SMEs in the preparatory 
stage of their exports. G/SCM/N/155/TUR 
Page 12  
 
   
 (iii)  Credits provided using the s ources of the Central Bank of Turkey 
  Short-term Export Credit Discount Programme;  a post-shipment finance facility in which 
export receivables subject to bankers' acceptances a nd/or irrevocable letters of credit are discounted 
by Turk Eximbank.  The programme aims to in crease the competitiveness of  Turkish exporters in 
international markets by enabling them to sell Turkish goods on deferred payment terms and 
eliminating overseas risks thereby encouraging th em to enter into new and target markets. 
 
 Short-term Pre-shipment Rediscount Programme;  a pre-shipment finance facility 
implemented within the framework of an additiona l limit to the post-shipment discount limit extended 
to Turk Eximbank by the Central Bank of Turk ey.  The programme aims to support Turkish 
manufacturers, exporters and manufacture r-exporters on pre-shipment basis.  
 
 2.  Medium-Term Export Credits (Project Credits) 
 
 Medium-term export credits are specific cred it programmes, available for export transactions 
that cannot be covered under the sta ndard credit and guarantee programmes. 
 
 Overseas Chain Stores Investment Credit Programme;  Turk Eximbank supports the overseas 
investments of Turkish entrepreneurs for the est ablishment of shopping malls and chain stores in 
which various consumer goods may be offered for sal e.  The programme aims to support direct sales 
of Turkish brand consum er goods in international markets a nd establish Turkish brand names and 
promote Turkish designed goods abroad.  
 
 Ship-Building Finance and Guarantee Programme;  Turkish companies involved in 
shipbuilding and/or exporting of ships are provided dir ect loans and/or letters of guarantee so that they 
may obtain pre-financing either in advance or in in stallments from the buyer or they can buy supplies 
& materials with payments having a fixed term.  The programme aims to support Turkish dockyards 
in order to increase their shares and co mpetitiveness in international markets. 
 
 Letter of Guarantee Programme for Overseas Contractors' Services;  Turk Eximbank 
supports Turkish contractors by providing them letter of guarantee for their overseas projects.  The 
programme aims to enable Turkish contractors to su stain their current share in international markets 
and encourage them to enter into new markets. 
 
 Specific Export Credit Programme; is used to evaluate credit demands that cannot be met 
within the Bank's existing standard credit programmes.   It is a medium-term pre-shipment financing 
facility provided to manufacturers/exporters for project s that generate foreign currency.  It aims to 
meet the specific requirements of Turkish manuf acturers/exporters through medium-term financing 
and thus encourage the export of new products to new markets.  
 
 3.  Credits for Foreign Currency Earning Services 
 
 Tourism Marketing Credit Programme;  a short-term financing facility provided to Turkish 
travel agencies and airline companies for their promotional and marketing activities or services 
abroad.  The programme aims to  increase the competitiveness of travel agencies through financing 
their promotional and marketing activities abroad and t hus contribute to Turkey 's balance of payments 
via increasing tourism revenues. 
 
 International Transportation Marketing Credit Programme;  a short-term financing facility 
provided to international transportation companies to increase their competitiveness.  The programme 
aims to contribute to Turkey's foreign exchange earnings.  On 21 June 2004 air transportation has  G/SCM/N/155/TUR 
 Page 13 
 
 
  been included in the International Transporta tion Marketing Credit Programme, which covered 
international shipping and road transportation previously.    Credit Programme for Foreign Currency Earning Services;  a financing facility provided to 
companies residing in Turkey for both their fore ign currency earning services abroad and export of 
services like software projects, consultancy services, etc.  The programme aims to contribute to 
Turkey's foreign exchange earnings. 
 
 4.  Islamic Development Bank Backed Credits 
 
 IDB Export Financing Scheme (EFS); Turk Eximbank acts as an intermediary agency for the 
Export Financing Scheme of the IDB, in accordance  with the agreement signed in 1988 between the 
two parties.  This programme entails financing on buyer credit basis.  The ultimate aim is to increase 
the competitiveness of Turkish exporters in curre nt and new markets by enabling them to sell on 
deferred payment conditions.   
 EFS Line;  EFS also entails a limit amounting to USD 20 million provided by the IDB.  Under 
this credit line allocated to Turk Eximbank by  IDB, Turk Eximbank has the credit approval 
authorisation and bears the buyer's risk. 
 
 IDB Import Trade Financing Operations (ITFO Line);  another limit provided by the IDB's 
ITFO Line financing scheme to Turk Eximbank, whic h is a medium-term financing facility.  It aims 
to provide finance for the imports of raw materi als, semi-capital and capital goods from member and 
non-member countries of OIC, which are used in the production of export goods.  
 
 5.  Buyers' Credit and Guarantee Programme 
 
 This is a medium- and long-term financia l support programme, which has been mainly 
developed for the export of capital goods and turn-k ey investment projects to be undertaken by 
Turkish contractors.  The programme aims to st rengthen the competitiveness of Turkish exporters and 
contractors in international markets and to prov ide these companies a risk-free environment for their 
activities in markets at high political and commercia l risk.  Through this programme, Turk Eximbank 
enables foreign buyers to purchase Turkish goo ds and services on deferred payment conditions. 
Within the framework of this programme, financin g facilities are allocated for project finance and 
may take the form of direct lending or guarantee.   Sovereign transactions have priority in the 
evaluation.  Also, taking the strength of the bankin g sector of the buyer country into consideration, 
Türk Eximbank may conclude transactions with cred itworthy banks as either borrowers or guarantors. 
Furthermore, in some project finance situations , other security mechanisms such as escrow account 
arrangements may also be required.  The borrowers /guarantors should be leading banks acceptable to 
Türk Eximbank or the official entities/institutions in the buyer country.   6.  Short-term Export Credit Insurance Programme 
 
 The programme cover is provided on the w hole-turnover basis for commercial and political 
risks.  Shipments up to 360 days to be effe cted on all payment terms from open-account to 
documentary credits are covered in accordance wi th the country cover condition and credit limit 
approval.  This post-shipment facility aims to provide insurance cover against political and 
commercial risks.  Since 1 January 2004, pre-shipment cover has also  been provided for the insured 
firms within the framework of the Shor t-Term Export Credit Insurance Programme  
 
 7.  Medium and Long-term Insurance Facilities 
  This is a single contract (single buyer) mu lti-transaction export credit insurance programme 
providing cover against commercial and/or political risks for the export of capital or semi-capital G/SCM/N/155/TUR 
Page 14  
 
  goods with credit terms up to five years, in princi ple.  Extended credit terms may be covered in line 
with the specific conditions and/or the require ments of the export transaction upon the Board's 
approval. 
 
 Specific Export Credit Insurance Programme;  provides insurance cover for the export of 
capital and semi-capital goods sold with credit terms up to  5 years.  It aims to provide insurance cover 
against commercial and political risks for both pre- and post shipment stages  
 
 Specific Export Credit Insurance Post -shipment Political Risk Programme;  provides 
insurance cover for receivables with credit terms of up to 5 years relating to the export of capital and 
semi-capital goods.  It aims to provide insuran ce cover against political risks only for the post-
shipment stage. 
 
 Specific Export Credit Insurance Post -shipment Comprehensive Risk Programme;  Same as 
Post-Shipment Political Risk Programme, except that both commercial and political risks are covered.  
 
 8.  Insurance Programme for Unfair Calling of Bond 
 
 In order to support the Turkish contracting sector, a new insurance programme covering the 
risk of unfair calling of bonds to be issued for Turkish contractors for their overseas project was introduced at the beginning of 2004.  This c over applies to bid bonds, advance payment and 
performance bonds for Turkish contractors in order to  eliminate the risk of unfair calling of bonds. 
 4. Background and authority for the subsidy
 
 
 Turk Eximbank regularly presents her annua l programmes to the Supreme Advisory and 
Credit Guidance Committee chaired by the State Minist er in charge of the Bank's activities.  The 
Committee approves Turk Eximbank's annual progra mmes, including country limit ceilings for the 
credit, insurance and guarantee programmes as well as Turk Eximbank's general strategy, targeted 
annual volumes and key objectives of Turk Eximbank' s short and medium term  credit programmes for 
the year.  The Committee meets at least once a year and the Board of Directors of Turk Eximbank is 
obliged to observe the limits set.  The Committee also includes as members: 
 
 1. Undersecretary of the State Planning Organisation 
 2. Undersecretary of the Treasury  3. Undersecretary of Foreign Trade  4. Undersecretary of the Ministry of Industry and Commerce 
 5. Undersecretary of the Ministry of Finance 
 6. Governor of the Central Bank of the Republic of Turkey   The Chairman and Deputy Chairman of the Board of Directors and the Chief Executive 
Officer (CEO) of the Bank are also members of the Committee.    
5. Form of the subsidy
 
 
 Short-term export credits 
 
 In the form of loan. 
 
 Buyers' Credit and Guarantee Programme 
 
 It may be in the form of direct lending or guarantee.  
  Other medium and long term export credits  G/SCM/N/155/TUR 
 Page 15 
 
 
   
 In the form of loan or guarantee 
 
 Short, Medium and Long Term Insurance Facilities 
 
 In the form of export credit insurance. 
 6. To whom and how the subsidy is provided 
 
 
 1.  Short-term Export Credits  
 
 (i)  Credits Extended via Commercial Banks   Pre-shipment Export Credit Programme;  extended to Sectoral Foreign Trade Companies 
(SFTC), manufacturers, manufacturer-exporters a nd exporters for a maximum of 360 days for YTL 
credits and 540 days for FX credits.  The credit is extended via intermediary Turkish commercial 
banks, which are allocated credit lines following an  evaluation process.  These commercial banks are 
responsible for the default risk of the borrowers.  Turk Eximbank therefore assumes bank risk rather 
than that of the exporter or manufacturer.  The interest rate is determined by Turk Eximbank 
according to money market rates, loan repayment periods and cost of funding.  
 
 PSEC-Priority Development Areas Export Credit Programme ; extended to companies located 
in Turkey's priority development areas.  Intermed iary banks are required to extend at least 5 per cent 
and at most 25 per cent of their credit limit to firms in these regions.  Interest rate is slightly lower 
than the interest rate of PSEC YTL.  
 (ii)  Credits Extended Directly by Turk Eximbank 
  Foreign Trade Companies Short-term Export Credit Programme;  extended to Foreign Trade 
Corporate Companies (FTCC) and Sectoral Fore ign Trade Companies (SFTC) with a repayment 
period of up to 180 days.  Applicants must be entitled to FTCC and SFTC status by the Undersecretariat of Foreign Trade.  The interest ra te is determined by Turk Eximbank according to 
money market rates, loan repaym ent periods and cost of funding. 
 
 Pre-export Credit Programme;  extended to manufacturer-expor ters, exporters and export 
oriented manufacturers except FTCC and SFTC for a maximum of 360 days for YTL credits and 540 days for FX credits, and allocated on the basis of pr evious year's export performance.  The interest 
rate for FX option is the same as that of PSEC FX and the rate for YTL option is the same as that of 
PSEC YTL. 
 
 Pre-export Credit Programme for SMEs;  extended to only small and medium scale 
enterprises directly by Turk Eximbank for 540 days.  The interest rate is lower than other short-term 
credits. 
 
 (iii)  Credits provided using the s ources of the Central Bank of Turkey 
  Short-term Export Credit Discount Programme;  export receivables of Turkish exporters, 
manufacturer-exporters and manufacturers are discounted.  Export receivables with a maturity of up 
to 180 days are discounted on LIBOR+spread, using the funds allocated by the Central Bank of 
Turkey.  In some cases, Turk Eximbank may use its own resources after evaluation. 
 
 Short-term Pre-shipment Rediscount Programme;  a pre-shipment financing facility provided 
for Turkish manufacturers, exporters and manufac turer-exporters.  Promissory notes issued by 
exporters on behalf of Turk Exim bank, which have the aval of banks possessing a short-term letter of G/SCM/N/155/TUR 
Page 16  
 
  guarantee limit with Turk Eximbank and which have a maximum maturity of 360 days, are discounted 
under this limit.  This programme covers expor t transactions based on cash against documents and 
irrevocable letters of credit.  Such transactions  including those based on cash against goods may also 
be discounted from Turk Eximbank's own resources after evaluation.  Rediscount rate is LIBOR+spread, where spread is determined by Turk Eximbank. 
 
 2.  Medium-Term Export Credits (Project Credits) 
  Overseas Chain Stores Investment Credit Programme;  extended to Turkish entrepreneurs 
who invest abroad for the establishment of shopping  malls and chain stores in foreign countries and to 
those who invest abroad for the establishment of st ores to sell their own brand.  Entrepreneurs who 
benefit from this programme may also benefit from short-term export credit programmes for the 
export of Turkish goods to be sold  in these stores.  Credits under this programme are granted for up to 
seven years.  Interest rates are determined according to the length of credit, the cost of funding and the 
credibility of the project exporter.  The maximum cr edit limit is 85 per cent of the investment value. 
 
 Ship-Building and Exporting Financing Programme;  Turkish firms involved in ship-building 
and/or the export of ships are eligible for this cr edit.  The terms and conditions of the loan and/or 
letter of guarantee are determined by Turk Eximba nk for each transaction, considering the contract 
signed between the buyer and the exporter.  
 
 Letter of Guarantee Programme for Overseas Contractors' Services;  Turkish contractors who 
participate in tenders abroad are provided letters  of guarantee by Turk Eximbank under the counter-
guarantee of Turkish commercial ba nks.  Under this programme, Turk Eximbank issues a bid-bond, 
performance-bond and advance guarantee letter thr ough a bank or directly to cover Turkish 
contractors responsibilities for the possible projects against the employer.  The commission rate and 
the payment term is determined by Turk Eximbank for each transaction.  
 
 Specific Export Credit Programme; companies that engage in factory construction and 
manufacturer/exporters that produce high-value-added industrial export goods are eligible for this 
programme.  It is provided with th e terms determined on project basis.  Interest rates are determined 
by Turk Eximbank on project basis.  
 3.  Credits for Foreign Currency Earning Services 
  Tourism Marketing Credit Programme;  travel agencies selected by the Ministry of Tourism 
and private airlines that have obtained a working licence from the Ministry of Transportation, and 
those that attract more than USD 500,000 worth of foreign currency to Turkey annually are eligible 
for this credit.  The ma ximum repayment period is 12 months.  The amount of credit is limited to a 
maximum of 10 per cent of the foreign currency a ttracted by firms and 80 per cent of the total 
expenditures of the proposed project, but it cannot exceed USD 2 million.  But for the tour organizing 
travel agencies and airline companies selected by the Ministry of Tourism, the maximum repayment 
period can exceed 1 year and the amount of credit is limited to a maximum amount of 15 per cent of 
the foreign currency earnings, but in any case cannot exceed USD 4 million.  The interest rate is 
determined by Turk Eximbank. 
 
 International Transportation Marketing Credit Programme;  international transportation 
companies resident in Turkey with a freight revenue of more than USD 500,000 in the previous year 
are eligible for this credit.  The maximum payment term is 360 days.  The credit amount is 100 per 
cent of the freight to be realized in the credit period, but cannot exceed the company limit.  The 
interest rate is determined by Turk Eximbank. 
  G/SCM/N/155/TUR 
 Page 17 
 
 
   Credit Programme for Foreign Currency Earning Services;  companies resident in Turkey 
which engage in foreign currency earning services abro ad or export of services like software projects, 
consultancy services are eligible for this credit.  The terms are determined on project basis.  
 
 4.  Islamic Development Bank Backed Credits 
 
 IDB Export Financing Scheme (EFS);  provides credit facilities to importers residing not only 
in member countries of the Organisation of Islamic Conference (OIC), but also all countries for their 
imports from Turkey.  The IDB has the credit appr oval authorisation and the buyer's risk for the 
transactions mediated by Turk Eximbank is borne by  the IDB.  The mark-up rate is LIBOR+spread 
per annum where spread is determined on case-by-case basis. 
 
 EFS Line;  following changes made in 1998, Turk Eximbank provides export finance for 
exports directed to any country, whether an Islami c country or any country within this limit.  The 
credibility of the importer's country or the credibility  of the bank provided guarantee is taken into 
account in credit applications, which are evaluated on transaction basis.  
 
 IDB Import Trade Financi ng Operations (ITFO Line);  extended to Turkish 
manufacturer/exporters or export oriented manufacturer s to finance their import of inputs used in the 
production of export goods.  Export commitment is required and the amount of commitment is 
determined for each transaction by Turk Eximba nk.  The maximum repayment period is 30 months 
and the mark-up rate is LIBOR+spread.  
 
 5.  Buyers' Credit and Guarantee Programme  
  Credit lines are extended under sovereign guara ntee to correspondent banks and financial 
institutions in various c ountries.  Turk Eximbank provides fina ncial support to the projects undertaken 
by Turkish contractors through its credit and/or guarantee programmes.  Project credit is provided 
through a correspondent bank, which will also be th e borrower of the loan, in the project buyer's 
country.  The total payment term cannot exceed 8 years including the grace period.  Interest rates are established between the parties concerned in comply with the OECD Consensus. 
 
 6.  Short-term Export Credit Insurance 
  Short-term Export Credit Insurance Programme; all Turkish exporters, manufacturer-
exporters, FTCCs and SFTCs are eligible for this pr ogramme.  Cover is available up to 90 per cent of 
losses incurred as a result of commercial and political ri sks.  Premium is charged according to the risk 
classification of the buyer's country, credit length, payment term and the type of buyer (public or 
private).   7.  Medium and Long-term Insurance Facilities 
  Capital or semi-capital goods exported by Tu rkish companies may qualify for insurance under 
these programmes.  Cover is typically up to 95 per cent of 85 per cent (in principle 90 per cent or less) 
of the contract value with 15 per cent of the cont ract value having to be paid in advance.  The 
premium rates are determined by Turk Exim bank on transaction basis according to the risk 
classification of the buyer's country, credit length, terms and conditions of payment and the type of 
the buyer (public/private).   
 8.  Insurance Programme for Unfair Calling of Bonds 
  Bonds are issued by a bank in favor of the public buyer based in the borrowing countries for 
projects undertaken by Turkish contractors/Turkish subcontractor of an international consortium. G/SCM/N/155/TUR 
Page 18  
 
  Under this policy, Turk Eximbank is responsible to indemnify the Turkish contractor, due to a call 
being made under the bond by reason of events or  circumstances beyond the contractor's control. 
 7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount 
budgeted for that subsidy (indicating, if possible,  the average subsidy per unit in the previous 
year).  Where provision of per unit subsidy information (for the year covered by the 
notification, for the previous year, or both) is not possible, a full explanation.  
  Not available to Turk Eximbank's programmes.   
 Regarding short-term credit and insurance programmes; Turk Eximbank complies with the 
Agreement on Subsidies and Countervailing Measures of  the WTO.  Interest rates of these credits are 
determined by Turk Eximbank in  accordance with the developments in money markets, loan 
repayment periods and cost of funding.  Short-term  YTL credits are mostly funded by equity, profits, 
and general provisions, which are regarded as cost free items.  The rates charged by Turk Eximbank 
reflect the government's cost of funding and the Bank revises her rates accord ing to the changes in 
market rates to prevent erosion of her resources from inflation.  Interest rates of short-term foreign 
currency loans are defined by Turk Eximbank as "L IBOR+spread", where the spread is calculated by 
taking into account the credit length and cost of funds .  In order to fund these loans, Turk Eximbank's 
relies heavily on funds borrowed from Turkish commercial banks and al so on international 
borrowings.  The interest rates of these loans also reflect the cost of funds. 
 
 Regarding medium and long-term export cred it, guarantee and insurance facilities, Turk 
Eximbank fully complies with OECD Arrangement, wh ich determines the guidelines for the officially 
supported export credits for two years or more.   
 Regarding export credit insurance programmes,  Turk Eximbank follows all the disciplines 
and requirements furnished in the OECD Consensu s, Berne Union and the WTO.  The insurance 
activities of Turk Eximbank are similar with those of the traditional ECAs'.  Its basic insurance 
programmes are relatively well run and fully meet the underwriting requirements of international 
reinsurers.  For export insurance covering political and commercial risk, the exporter is charged a 
premium according to the risk classification of th e buyer's country, credit length, payment term and 
the type of buyer (public or private).  Like all other officially supported ECAs, only political risk is 
under the guarantee of the state; the losses incurred due to commercial risks are indemnified by Turk 
Eximbank from its own resources.  However, re -insurance treaties have been established with 
domestic and overseas re-insurance companies to ce de part of the commercial and political risks 
borne by Turk Eximbank under the short-term expo rt credit insurance programme (70 per cent of 
commercial and political risks under short-term insura nce activities are covered by a reinsurers panel 
on the basis of a quota-share treaty).  Premium ra tes and premiums collected have been fairly 
adequate to cover the long-term operating costs and losses of the programmes since commencement. 
 
8. Duration of the subsidy 
 
 
There is no time limit to Turk Eximbank pr ogrammes.  The programmes may be revised, 
eliminated or new programmes are introduced accordi ng to the requirements of Turkish exporters and 
international rules and regulations.   G/SCM/N/155/TUR 
 Page 19 
 
 
  Table III  
 
Turk Eximbank's Programmes In the Three Most Recent Years  
                      ($ million) 
 2004 2005 2006 
CREDIT/GUARANTEE 3,369.1 3.538.1 3,529.2 
1. SHORT TERM EXPORT CREDIT PROGAMMES 3,318.6 3,511.3 3,483.8 
Pre-Shipment YTL Export Credits 1,161.7 1,326,4 1,581.4 
Pre-Shipment FX Export Credit 954.3 799.4 757.5 
Foreign Trade Companies S-T YTL Export Credit  518.7 733.1 635.6 
Foreign Trade Companies S-T FX Export Credit  278.2 243.0 167.0 
Pre-Export YTL Export Credit 167.9 212.5 204.5 
Pre-Export FX Export Credit 177.8 155.2 119.8 
Pre-Export YTL Credit Programme for SMEs 8.1 5.6 2.3 
Pre-Export FX Credit Programme for SMEs 10.8 5.3 1.3 
S-T Export Credit Discount Programme 13.3 17.8 6.1 
S-T Pre-Shipment Rediscount Programme 27.8 13.0 8.3 
2. MEDIUM TERM EXPORT CREDIT/GUARANTEE 
 PROGRAMMES 30.7 11.4 14.6 
Overseas Chain Stores Investment Credit Programme  - - - 
Ship-Building Finance and Guarantee Programme 12.6 11.4 14.6 
Letter of Guarantee Programme For Overseas Contractors' 
Services 3.9 - - 
Specific Export Credit Programme 1.4 - - 
Bridge Financing Programme for Overseas Contractors' 
Services 12.8 - - 
3. CREDIT PROGRAMMES FOR FX EARNING 
SERVICES 15.7 5.8 9.3 
Tourism Marketing Credit Programme 11.8 4.4 6.1 
International Transportation Marke ting Credit Programme 2.3 1.4 3.2 
Credit Programme For Foreign Currency Earning Services 1.6 - - 
4.   IDB BACKED CREDITS - 1.6 - 
Export Financing Scheme-Line - - - 
IDB ITFO Line - 1.6 - 
5. BUYERS' CREDIT & GUARAN TEE PROGRAMMES 4.1 8.0 21.5 
INSURANCE 3,553.1 4.173.0 4,252.8 
1. S-T EXPORT CREDIT INSURANCE PROGRAMME 3,553.1 4.173 4,252.8 
2. MEDIUM AND L-T EXPORT CREDIT INSURANCE 
PROGRAMMES - - - 
3. INSURANCE PROGRAMME FOR UNFAIR 
CALLING OF BONDS - - - 
TTOOTTAALL  66,,992222..22  77,,771111..11  77,,778822..00  
 G/SCM/N/155/TUR 
Page 20  
 
   
III. EXPORT SUBSIDY PROGRAMME FOR AGRICULTURAL PRODUCTS  
1. Title of the subsidy programme
 
 
 The title of the subsidy programme is "Expor t Subsidy Programme for Agricultural Products" 
(Decree No. 2007/1).  2. Period covered by the notification
 
 
 The Decree 2007/1 of the Money-Credit and Coordination Council was announced in the 
Official Gazette dated 22 March 2007, which has been applied between 1 January and 
31 December 2007.  This programme came  into force replacing the Decree 2006/1. 
 3. Policy objective and/or purpose of the subsidy
 
 
 The policy objective of this export subsidy pr ogramme is to develop Turkey's export potential 
in processed agricultural products.  4. Background and authority of the subsidy
 
 
 Authority for the subsidy is the Money-Cred it and Coordination Council, which is comprised 
of the Ministers of State, the Undersecretary of the Minister of Finance, the Undersecretary for State Planning Organization, the Undersecretary for Fore ign Trade, the Undersecretary for Treasury and the 
Head of the Central Bank.  
5. Form of the subsidy
 
  The subsidies are provided in the form of deduc tion of debts to the public corporations (taxes, 
social insurance premium costs, energy cost s, telecommunication costs) from their subsidy 
entitlement.  
6. To whom and how the subsidy is provided
 
  The subsidies are provided to produce/exporters or exporters in the form of deduction of their 
debts to the public corporations from their subsid y entitlement which is calculated on the basis of 
fixed amount per unit. 
 
7. Subsidy per unit
 
  The subsidy per product is given below:  
Product Rate (in US$/ton) Share of exported quantity 
eligible to receive the 
subsidy 
2007/1   
Cut flowers (fresh) 205 37% 
Vegetables, frozen (exc. potatoes) 79 27% 
Vegetables (dehydrated) 370 20% 
Fruits (frozen) 78 41% 
Preserves, pastes 75 51% 
Honey 65 32% 
Homogenized fruit preparations 63 35%  G/SCM/N/155/TUR 
 Page 21 
 
 
  Product Rate (in US$/ton) Share of exported quantity 
eligible to receive the 
subsidy 
Fruit juices (concentrated) 150 15% 
Olive oil 125 100% 
Prepared or preserved fish 200 100% 
Meat of poultry (excl. edible offals) 186 14% 
Eggs 15$/1000 pieces 78% 
Preserved poultry meat products 250 40% 
Chocolate and other food preparations containing chocolate 119 48% 
Biscuits, waffles 119 18% 
Macaroni vermicelli 66 32% 
 
 The second column specifies that the subsidy will only be paid on determ ined percentage of 
the quantity exported.  This system has been used owing to the annual volume commitment of 
Turkey, originated in the WTO Agreement on Agriculture. 
 8. Duration of the subsidy
 
 
 The Decree 2007/1 of the Money-Credit and Coordination Council was announced in the 
Official Gazette dated 22 March 2007, which has been applied between 1 January and 
31 December 2007.  This programme ca me into force replacing the Decree 2006/1.  
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 No statistical data permitting an assessment of th e trade effects of this subsidy is available. 
 
__________